The Newspaper Guild of Greater Philadelphia

The company held a meeting this morning with representatives of all the unions at which publisher Brian Tierney described a grim financial picture for Philadelphia Newspapers. Citing the struggling economy and PN problems meeting debt requirements, Tierney predicted “a dire situation” by summer or fall if the company cannot find ways to cut costs by 10 percent.

Company executives intend to meet one-on-one with each union to discuss ways in which savings might be achieved.

They did not say what would happen if savings targets are not met, but made references to outsourcing jobs overseas. Tierney said he is determined to not lose investors’ money.

The Guild’s representatives at the one-hour session were PN Unit Chair Diane Mastrull and Local Representative Bill Ross.

Sadly, Tierney was especially harsh about our advertising sales staff, saying its union affiliation hampers him from getting the results the company needs. He threatened job cuts if the Guild prevails in arbitrations over what it contends were unjust firings of five advertising reps. In essence, the company is asking the Guild to violate the law by refusing to represent its members.

We will, however, as we have been doing, work with the company to attempt to find ways the Inquirer, Daily News and Philly.com can thrive and be a leader in an industry that needs creativity—not finger-pointing—to guide it through these difficult times.

We urge all members with any ideas for building revenue or cutting expenses to communicate them to Guild officers or to voices@local-10.com. We will then prepare a comprehensive response to the company’s request for help.

       BACKGROUND
We previously reported on our efforts to secure the best, affordable benefits package for our members. Assisted by our outside specialist, we shopped the marketplace and carefully evaluated our current program in terms of quality and scope of services, and, of course, cost. The review concluded that we would be wise to remain with our present provider for the full range of services currently offered, including medical, prescription drug, vision, dental and long-term disability. To pay for this, members would have to start contributing to the cost of these benefits beginning in 2008.

      COST & ENROLLMENT
Effective January 1, the contribution from full-time members requesting individual-only coverage for the comprehensive benefits package will be $10 per week. The weekly cost for full-time members seeking family coverage would be $35 per week. This contribution is made on a pre-tax basis through payroll deduction. However, to be eligible, you must submit an enrollment form (one is provided in an attachment to this email).

     ALTERING COVERAGE
You may waive medical coverage, or change your type of coverage to employee only, but you Must complete the Other Insurance Information section of the Enrollment/Change Form. If you opt out, you need to state that you and/or your dependents have coverage elsewhere, and demonstrate proof of that coverage. For your convenience, you may turn the form in when we meet December 13, 2007, or fax the form to Richard Gabriel Associates by December 17, 2007 at 215-773-9907. A feature of our program allows members to waive the medical benefits portion but still take advantage of the other coverage.

     STAYING WITH CURRENT COVERAGE
You STILL HAVE TO FILL OUT THE FORM, which you can return at the meeting, send in the return envelope you received with our mailed communication, or fax to Richard Gabriel Associates at 215-773-9907.

QUESTIONS AND ANSWERS
1. Do I have to fill in the form if I’m fine with everything?
A Yes.

2. Do I have to vote at the meeting on December 13?
A No. You are not required to attend the meeting or, for that matter, to cast a ballot. However, we strongly encourage your attendance and your participation in the vote. You can request an absentee ballot by e-mailing voices@local-10.com or by calling 215-928-0118.

3. Is the Board unanimous in supporting this initiative?
A- Yes. While no one is pleased with having to pay out of pocket, we listened to members in a series of focus groups who said they want to keep a benefits program of choice in the region. Even with the payroll deduction, it is an outstanding value given the comprehensive services provided.

4. What can individual members do to help control costs?
A If your significant other has comparable coverage at work but is on our plan, encourage him or her to use his or her own employers insurance. Switching your coverage from family to individual would then result in a savings for the plan and saves you $25 a week.

5. What would happen if we did not start this contribution to benefits?
A We would face a shortfall in the Health & Welfare Fund and be forced to drastically reduce the level of benefits offered. Nobody wanted to go there.

6. How will this impact our bargaining position going into the next contract negotiation?
A The cuts we made were an effort to help the new owners rebuild our newspapers. We will bargain hard to restore the cuts in future contracts.

7. Where can we go if we have additional questions?
A Do not hesitate to call Gabriel Associates at 215-773-0900 or email us at voices@local-10.com.

Good News!

Your pension fund trustees have made significant progress toward preserving our pension benefit. The fund will not be frozen. We are in the final stages of negotiating a merger with a healthy multi-employer fund that will preserve all previously earned benefits at the rate they were earned. For the next two years, annual service credits, at a slightly reduced rate, will be funded WITHOUT any payroll deduction from the members.

The Guild will have two trustees – a Guild officer and a company executive – on the merged fund’s board.

A legal notice, required by law, will be mailed to you today disclosing formally that the old fund is being terminated. This notice is in anticipation of merging into a new fund. As you might expect, this notice is laced with legalese

As soon as the final details of the merger are worked out, we will have an extensive information program and meetings to answer questions.

Guild ratifies new contract

A new three-year contract was ratified by Guild members with a 498-69 vote.

The final vote was announced after 9 p.m., at the end of a meeting that started at 7 p.m.

At the start of the meeting, Diane Mastrull, chair of the Inquirer-Daily News unit, with some 900-plus members, recommended members accept the "unanimous vote of the bargaining committee" for approval.

There were some 200 members present at the peak of the meeting, held in Congregation Rodeph Shalom Synagogue on North Broad Street. Some 275 members, who were unable to attend the meeting, voted by absentee ballot.

Speaking about the contract, Mastrull said, "it could have been far worse."

After her recommendation the floor was open for comments and questions. Thirteen members spoke, a majority of them having questions about pension provisions in the contract. Only one speaker directly urged rejection of the contract.

After the questions subsided and a motion was approved to start the vote, another motion was presented, and approved after some debate.

That motion instructs the (Guild) Executive Board to discuss - and pass -- a resolution saying the following:

1- Because of their tight-fisted, slash-and-burn, anti-labor tactics, we have NO CONFIDENCE in the new owners' actual desire to publish great newspapers.

2- Because of the new owners' recent record of poor business decisions, which includes hiring executives while promising layoffs of union workers, we have NO FAITH in their desire to treat employees with fairness and dignity.

3- Because of the yawning chasm between what the new owners promised and what they now are delivering, we have NO STOMACH to hear any more of their cheerful prattle.

For the new owners, we have "No Confidence, "No Faith, "No Stomach."